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Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality system. Several different vendors have been contacted. The owner

Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality system. Several different vendors have been contacted. The owner of the arcade, affectionately referred to by tha patrons as Wizard, has narrowed his selection to one of three choices (mutually exclusive altematives). The data below describes the three systoms under evaluation. Annual costs are based on electricity consumed, replacement parts based on usa, and preventive maintenance. Revenue estimates are provided by the vendors based on regional data and relative thrill as compared to other arcade games and a cost of $1.00 per play. n. Which method (PW, AW, FW, IRR) would be best (easiest) to use to select the preferred altemative? b. What is the implicit study period for this problem? c. Which alternative should be selected when MARR is 19%? image text in transcribed
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Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality system. S selection to one of three choices (mutually exclusive alternatives). The data below describes thet Revenue estimates are provided by the vendors based on regional data and relative thrill as comp a. Which method (PW, AW, FW, IRR) would be best (easiest) to use to select the preferred altema b. What is the implicit study period for this problem? c. Which alternative should be selected when MARR is 19%? Click the icon to view the datatable for the additional information about three alternatives. Click the icon to view the interest and annuity table for discrete compounding when the MARR a. Which method would be best (easiest) to use to select the preferred alternative? O A. PW OB. AW O C. IRR D. FW b. The implicit study period is years. C. AWA=$(Round to the nearest dollar.) AW, = $(Round to the nearest dollar.) AWC=$(Round to the nearest dollar.) should be selected. Click to select your answer(s). replacer on regional data and relative thrill as compared to other arcade games and a cost of $1.00 per play. siest) to use to select the preferred alternative? 19%? al information about three alternatives. e for disa i More Info ct the pro Initial costs Annual costs Annual revenues Salvage value at end of useful life Useful life System A $13,500 $6,800 $11,200 $1,000 System B $11,500 $5,100 $10,100 $1,500 System C $15,500 $7,000 $12,400 $2,000 5 years 6 years 4 years Print Done

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